The Nature of Income Acme Company prepared the following income statement for the year 2000:

Use the income statement of Acme Company and your knowledge of income reporting to answer each of the following:

a. What was the change in owners’ equity during the period excluding the effects of any additional investments or withdrawals by the owners?
. Over what period was Acme’s income measured?
. What was the major source of Acme’s income?
. What costs did Acme incur in running the business?
. What item or items were included in the income statement that were not directly related to Acme’s operating activities for the period?
Onemon

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Acme Company Income Statement Year Ended December 31, 2000 Net Sales Cost of products sold Marketing, administrative and other operating expenses Operating income Interest expense Other income, net Earnings before income taxes Income taxes Net earnings $44,545 (30,734) (10,743) $ 3,068 (599) 410 $2,879 (466) $ 2,413